Global Services segment in 1Q18
In 1Q18, Boeing’s (BA) Global Services segment’s revenues jumped 8.0% to $3.9 billion compared with $3.6 billion in 1Q17. Growth in commercial services boosted the segment’s revenues in 1Q18. The segment’s revenues accounted for 16.5% of total revenues in 1Q18, compared with 16.5% in 1Q17.
The segment’s operating profit was $644.0 million in 1Q18, up 3.0% YoY (year-over-year) from $623.0 million in 1Q17. Global Services segment’s operating margin, however, contracted 80 basis points to 16.3% in 1Q18 from 17.1% in 1Q17.
Global Services division’s 1Q18 orders and backlog
In 1Q18, the BGS (Boeing Global Services) segment was awarded a follow-on contract from the Royal Canadian Air Force. The contract requires BGS to provide engineering support, full system logistics, data analytics, supply chain, and training services for its Chinook fleet.
The Royal Saudi Air Force awarded a contract to BGS for F-15 repair support services. The division also gained a contract from Aeroméxico for the 787 landing gear exchange program. As part of Boeing AnalytX, the company released Self-Service Analytics to complement its digital solutions portfolio. This allows its customers to access data to gain deeper operational insights.
The total backlog for the segment rose slightly from $19.6 billion on December 31, 2017, to $24.5 billion on March 31, 2018. The increasing backlog was due to contracts awarded in 2018, which were partially offset by revenues recognized on contracts awarded in previous years.
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